The power under S. 41 (b) of the Arbitration Act would be available to be exercised by the Court even before an arbitrator is appointed.

P. A. CHOUDARY, J.

( 1 ) CIVIL Miscellaneous appeal is filed against an order of the 6th Additional Judge, city, civil Court Hyderabad, rejecting the grant of any relief to the appellant-petitioner in I. A. No. 1979/82 in O. S. No. 1089/82 by directing the A. P. State civil supplies corporation limited not to withhold payment of amounts due to the petitioner-appellant for the transportation work done by the transportation work done by the petitioner appellant for that corporation.

( 2 ) THE petitioner-appellant was appointed by the respondent-corporation as a transport contractor for the purpose of transporting sugar. For the above purpose the corporation had appointed the appellant as a contractor with reference to several districts under separate agreements. Those districts covered by separate agreements are Adilabad Khammam, mahaboobnagar and Medak. In addition to the above the petitioner-appellant had also been appointed as a contractor to transport sugar of the corporation to Kurnool district. It appears that there was a separate agreement executed with reference to this contract work also. Although the petitioner-appellant disputes the validity and enforceability of that agreement the corporation maintains that the agreement is valid and binding between the parties. Now the petitioner appellant rather-high-handedly with held the delivery of sugar which was entrusted to him to be transported to Kurnool district. We are told even to this day the quantity of sugar so with held by the petitioner-appellant from being delivered for distribution to Kurnool District remains, with the petitioner-appellant only. The corporation proceeding on the basis that the failure of the petitioner-appellant to delivery the above mentioned quality of sugar for distribution to Kurnool district had caused damages to it, withheld the payment of moneys which are due and payment of moneys which are due and payment of moneys which are due and payable to the petitioner-appellant for the transport work he had done with respect tot he aforementioned four districts of Adilabad. Khammam, medak and Mahaboobnagar. The petitioner appellant disputing the rights of the respondent corporation to withhold payments and invoking arbitration clause, had filed O. S. No. 1089/82 under S. 20 of the arbitration Act. Pending that arbitration suit, the petitioner-appellant had filed the aforementioned I. A. No. 1979/82 requesting the Court to issue an order under S. 41 (b) of the Arbitration Act read with its II schedule directing the corporation not to withhold the payment of amounts due to the petitioner appellant for the transport work done by him with respect tot he aforementioned four Districts on the ground of damages alleged to have been suffered by the corporation with reference to the work of the petitioner in Kurnool district. This application was rejected by the lower Court, against which this appeal has been filed.

( 3 ) MR. Duba Mohanrao the learned counsel for the appellant had argued at great length contending that this is a fit case where the lower Court ought not to have refused to grant the relief asked for. His case is that the moneys were due to his client from the corporation with respect to the work which has been satisfactorily done by him and that there was no jurisdiction for the corporation to withhold payment of those moneys on the ground that the work which his client had done in relation to Kurnool district had caused damage to the corporation. In support of this contention, he had relied on S. 41 (b) of the Arbitration Act read with II schedule and also a decision of the Supreme Court also a decision of the Supreme Court in Union of India v. Raman Iron Foundry, AIR 1974 Supreme Court 1265. We must frankly say that the argument of Mr. Mohanrao is fully supported by the judgment of the Supreme Court, where in the Supreme Court held that the Court power to make an order in that case directing the respondent-govt. not to withhold the payments d

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